DONATE
DONATE
31.01.2014.

Three EU-related impacts of Scotland leaving the UK

Scotland’s place in Europe, in the event of a Yes vote in the Independence Referendum,was a matter of fierce debate throughout 2014.

 

A number of UK and European leaders, including Manuel Barroso, President of the European Commission, and Mariano Rajoy, the Prime Minister of Spain, stated that an independent Scotland would have to apply for EU membership as a new member. As with all new members, this would involve a commitment to joining both the euro currency and the Schengen area.

 

This timely report found that Independence would cost Scotland nearly a billion pounds a year.

 

The losses would be the result of Scotland failing to renew three special arrangements that benefit the UK in its dealings with the EU: the budget rebate, the euro opt-out, and the opt-out from the Schengen border agreement. The study measured the impact on the Scottish economy of each.

 

Key findings:

The UK rebate, negotiated originally by Margaret Thatcher in 1984, is worth around £295 million (€354m) to Scotland every year. As a sovereign state, Scotland would have to contribute to the UK’s rebate alongside other member states – costing her £46 million (€55m) a year.

 

If Scotland joined the Euro, as all new member states are currently obliged to do – the report estimated that total losses from higher transaction costs and changes in trade patterns would cost the Scottish economy a further £468million (€562m) a year.

 

Estimated impacts of select EU-related costs for an independent Scotland

Issue

Ongoing annual costs (€m)

Output effect (€m)

Foregone jobs

Rebate

409

736

6,680

Euro

562

1,011

9,637

Schengen

92.5-125.7

46.8

433

Total Identified

Costs

1,063.5 – 1,097.7

1,794

16,750

 

    DOWNLOAD DOCUMENT

Newsletter, latest research and events

STAY INFORMED

New Direction - The Foundation for European Reform
Rue du Trône, 4, 1000 Bruxelles, Belgium
contact@europeanreform.org
+32 2 280 63 58


TWITTER  |  FACEBOOK  |  YOUTUBE  |  FLICKR  |  DONATE
ABOUT  |  ECR  |  ACRE  |  EYC  |  EDU  |  PRIVACY POLICY & LEGAL
Copyright © 2016 New Direction – The Foundation for European Reform